I guess I'm pretty passionate about this subject because I too brokered loans for a living, and the frustration of not helping my client get the needed refinance to make payroll, or stay in business left me a little jaded. So I searched for solutions and this blog is my opportunity to share.
Finding mortgage solutions for your commercial property owners can be a challenge in this marketplace, as you already know. Lenders are just NOT lending as in the years past, even if they were, many owners would not be able to meet the balloon demands of their present mortgage terms.
Over the next 3 years there will be almost ONE TRILLION dollars of CRE mortgages due that will be upside down. This is not very good news for our economy however, there are alternative solutions that meet the need to ease cash flow and restructure mortgage debt. Yep, we are in the right place at the right time to really provide commercial relief!
I was really taken back a few weeks back, seeing the glaring headlines "New York Tavern on the Green Restaurant Bites the Dust". WoW, that in itself is mind boggling. At one time this restaurant was the highest grossing restaurant in the Country. Each day there are other headliners, SAM's club closing 10 stores, Applebees Chain in financial disaster. Look around the tapestry, it is changing and we are being forced to change with it!
So, Is this the signs of the times? Yes and No, because there are options available and it does not require any more effort than that you are now giving to your business. And, you would be pleasantly surprised at the money you are leaving on the table by not having these tools in your toolbox! When you share the information, the win-win will put more juice in your step.
Commercial Loan restructuring is becoming the ONLY option for many owners who need mortgage relief. No Credit is needed, No DSCR required, NO Appraisals or Massive reserves! Your customers will forever sing your praises. When we take the step toward offering more solutions, our income reflects by swelling exponentially!
Another smart business strategy is Cost Segregation. It is an indept study performed by IRS approved and certified Structural Engineers which uncovers tax dollars paid in regular depreciation schedules of 27.5 & 39 years. This study reclassifies company's assets and accelerates them to 5, 10, and 15 years. This tax code is explained in detailed on the IRS.gov websites. This law allows for a study to reflect 5 years prior and offers a no questions asked, mandatory response for immediate remedy, once filed with the IRS.
The HOT Question of the day to all those in the CRE financing profession...what are you doing with the "dead" files locked in your file cabinet you were not able to refinance?